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Another Myth Resolved

I keep on hearing how other hosts have better commission splits. Its one of the mantras for our critic’s in an attempt to disqualify Travel MLM’s as legitimate Host Agencies. I imagine it helps them support this idea they have about it all being about recruiting, since recruiting happens to be their main focus.

It’s amazing to me how YTB Travel Network President Kim Sorensen participated in Travel Weekly’s Leisure Summit last week, which I assumed was designed for leisure travel related topics. As soon as the switch was flipped to Kim however, the entire mood and focus turned. One of the very first questions asked was related to recruiting numbers. The conversations going on around the internet focus on recruiting numbers as well. Yet not one of our critics has acknowledged that YTB has doubled their production with Carnival over last year. (And we still have almost an entire quarter to go.)

Ignoring travel sales is nothing new. We endured all kinds of excuses concerning our #35 ranking and still have a few who attempt to disqualify our jump to #26 this past year. Ignoring this documentation however will not make it go away, only delay the inevitable that YTB is a real producer of travel in this industry.

For critics, can’t be about travel or commission splits, and the perception being painted splatters this myth that we in YTB don’t really care enough about the travel side of the business to figure out or become productive sellers of travel with an MLM as a Host Agency. Even if we do have the desire, the splits from other hosts are far better than what YTB or any other MLM out there will give you.

Imagine the grin on my face when I found out the truth via a Travel Weekly Article early Tuesday Morning. I constantly hear numbers around 80/20, 90/10 and even 100% commissions being made via other Agents but according to a survey done by NATCA the average split is 74/26, just a mere 4 clicks north of what I currently make with YTB. (70/30)

I also find it interesting that 65% of the Agents surveyed stated they didn't need a GDS with their business model although I and others have been told otherwise. Somehow, without the proper education and knowledge of the various GDS systems out there, I can’t do business in the same fashion they do. While true, a GDS is a different animal in this industry, to state that it’s a requirement to be considered “real” is a complete fabrication.

Here’s the rundown from the report:

The NACTA report tracks sales, revenue, demographics and other data from 2007, and its findings are based on 449 responses to an email survey distributed in June to NACTA members by ASTA Research.

The report went on to state that 37.9%, were "fully independent," (meaning they were not affiliated with a host agency and that they dealt directly with suppliers) and hosted agents followed at 29%, while 20% stated they were a "combination independent and hosted agent."

Of the Host Agencies or Franchise model most use, 20% are with Nexion. Travel Planners had the second-highest percentage with 7.8%. Other Host Agencies included Joystar who claimed 3.4%, America's Vacation Center who claimed 3.7% and YTB with 1.5% of the Agents surveyed.

Funny how both Travel Weekly and NACTA included YTB as a Host Agency isn’t it?

Yeah yeah…I know all about the current management not being “qualified” and YTB will never be considered a “legitimate” Host by the few stragglers who can’t keep up with the times. You need to realize however, that’s their problem, not ours.

I have to wonder how many more years YTB will have to wait until some consider them “qualified”. For goodness sake, we’re going on 8 years now, and I wouldn’t consider an 8 year old company who’s smack dab in the middle of all the other Agencies in America unqualified.

And apparently neither does this trade publication or the NACTA.


PS - If you’d like to keep up to date with all the latest news, acquisitions, and developments with YTB feel free to sign up for my FREE Newsletter. Just like here, it’s loaded with food, water and sunshine to grow your YTB business.

Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker

Phone: 678.458.5812


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